h lon hosiery ltd Directors report

SVP AGRO FOODS LIMITED DIRECTORS REPORT To The Members SVP AGRO FOODS LIMITED Your Director present their Ninth Annual Report and audited Accounts for the year ended 30th September,1998. 1.OPERATIONS Despite adverse condition your company recorded highest yearly production representing capacity utilisation of 81% as against 78% in previous year. The turnover of the Company also increased by 82% on annual basis. 2. FINANCE Your company has issued and alloted 18,00,000 lacs Equity shares at par on private placement basis to promoters and their associates in December,1998. 3.CAPITAL PROJECTS: The members are aware that the Company is increasing its production capacity from 1500 MTPA to 2700 MTPA and as undertaken a backward integration programme at an estimated cost of Rs 960.00 lacs. The over all progress of the project is satisfactory. Your company is also considering to set up a branch/owned subsidiary Company in The Netherlands. 4. PARTICULARS OF EMPLOYEES The information as required Under Section 217 (2-A) of the Companies Act 1956 is nil. 5. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS AND OUTGO Total energy consumption Electricity Purchase : Unit Amt (Rs in lacs) Cost per Unit (Rs) 812314 28.59 3.52 Foreign Exchange Earnings and outgo: Earning in Foreign Exchange on account of Export US 3146593/- Expenditure in foreign currency Pound string 1000/- 6. FIXED DEPOSITS: The Company has accepted/renewed public deposits of Rs 43.52 lacs during the period under consideration. 7.DIRECTORS: Shri Dhermesh.D.Shah and Shri Bharat.C.Patel Directors of your Company are retiring by rotation and being eligible offer themselves for re-appointment. 8. AUDITORS: M/S S.HEMAL & ASSOCIATES Chartered Accountants, Ahmedabad who are the present auditors of the Company holds office until the conclusion of the ensuing Annual General Meeting.The Board recommends their appointment. 9. ACKNOWLEDGEMENT Your Directors would like to thank the state and Central Government Authorities, the Financial Institutions and Banks for continuos support given by them to the Company. We also express our gratitude for the whole hearted support from our esteemed business associates , depositors and all our shareholders of the Company. We also take this opportunity for expressing our sincere appreciation of all the outstanding contributions made by employees at all level to the operations of the Company. By order of Board of Director For SYP AGRO FOODS LIMITED YOGESH.H.BAROT Chairman Place: Ahmedabad Date : 3rd March, 1999.